This is a report about the Emirates Airlines company. It is a globally recognized company based in Dubai and offers transportation worldwide. It is a State-owned company under the vast umbrella of the Investment Corporation of Dubai, initiated in the mid-1980s with the financial support of $10 million from the royal family of Dubai as the start-up capital. The company was headed by Al Maktoum Ahmed bin Saeed, the company’s current chairman. The Airline was conceived as a result of the stoppage of airline services to Dubai by the Gulf Air company in the early 1980s. The company received its first two aircraft from a Pakistani international Airline. This company also offered training facilities and free training to Emirates’ first cabin crew members at Karachi airport. Emirates Airlines has since then grown and expanded tremendously to the point of global recognition as one of the world’s biggest names in the Airline industry.
This report also gives insights into the input-transformation-output of the company, the challenges faced by the company, five main performance objectives for operations and the implications, and the understanding of the companyâ€™s Management on Volume, Variety, Variation, and Visibility, commonly referred to as four Vs. It also highlights how the Management of Emirates airline considers and integrates these factors in the company’s operations and ensures good progression and stability throughout its existence.
Table of Contents
Executive Summary 2
Emirates Airline 4
Emiratesâ€™ concept of input-transformation-output 5
Inputs-transformation-output model 6
Implications of the Four Vs. 8
Vision and mission statements 10
Performance objectives 11
Minimizing expenses 11
Quality improvement 12
Customer satisfaction 12
Social responsibility 12
Challenges faced by Emirates Airline 13
Emirates airline, one of the two leadingAirlines of the United Arab Emirates, its competitor Etihad, is the globeâ€™s fourth largest Airline per scheduled income per passenger-kilometers flown. It is also the second largest worldwide in terms of cargo tonne-kilometers passed. The company is an Emirates Group subsidiary owned by the Investment Corporation of Dubai, which belongs to the state of Dubai. The Airlineâ€™s headquarters are based in Garhoud in Dubai. It runs in about 150 cities in 80 different nations across six continents, making it the largest Airline in the middle east (Logothetis & Miyoshi, 2018). Its 300 fleet enables it to operate about 3600 flights weekly from itsterminal 3hubs at Dubai International Airport.
Emirates Airlines was initiated on March 15th, 1985, and gained a financial boost from the royal family of Dubai and Pakistan International Airlines. They offered the company two aircraft as the company’s first aircraft. The business was initiated becauseof the decline of services by Gulf Air in the mid-1980s Dubai. Pakistan International Airlines offered the Emirates’ cabin crew free training and resources at Karachi Airport. Emirates was required to operate independently of the government subsidy due to its $10 million initial capital. In the years following its conception, Emirates Airlines grew and expanded in its destination and fleet. Consequently, in 2008, it shifted all its operations to Dubai International Airport, specifically at Terminal 3(Oâ€™Connell and Bueno, 2018). Emirates Airlines was led by Ahmed Bin Saeed Al Maktoum, the Airline’s chairman todate.
The company has been making profits all through, and in its 11 years of initiation, it doubled its size every four years. Although the company has faced some financial setbacks, its earnings are good enough to sustain it. That is why the government has not put any newer money into it nor interfered with its running, although it is the sole owner.
Emiratesâ€™ concept of input-transformation-output
Like other companies, Emirates Airlines transforms its inputs into outputs to make profits. However, its information, results, and transformation process is unique due to the nature of the inputs and end products and the transformation process.A transformation process is, therefore, any action or series of steps that take on one or more pieces of information, adds value, and transform them into end products. The transformation process includes variations in the physical features of clients and materials; variations in the location of clients, materials, or information; accommodation or storage of fabrics, clients, or data; variations in the form or motive of communication, variations in ownership of information or materials and variations in physical or even mental state of clients. Habitually all three forms of input, which are: clients, information, and materials, are transformed by the same firm, for instance, in our case, Emirates Airline, conveyingFreight and travellers from one place to another. Transportation involves information about the passengers, their luggage, and themselves as customers.
Emirates Airlines employs a lean transformation process model that emphasizes delivering and improving high levels of customer satisfaction by using low amounts of resources and effort. The main goal of this method is to cut off waste to reduce costs incurred by the company while achieving customer satisfaction (Harvey, 2017).An airline company’s input includes passengers, fuel, water, Cargo, and information. All the inputs are equally crucial since the company cannot carry on with its transformation operations without one. Regarding the resources of Emirates Airlines, travellers are transformed by providing them with the means of transport by air to their desired terminuses. Their possessors transform Freight and data through air transport to the statedterminus. Fuel and water, on the other hand, are inputs used by the aircraft and other machinery to run as they transform the additional information of the airline company.
The output of Emirates Airlines includes safe and timely transportation of its passengers to their final destinations, satisfied customers, and undamaged or lost Cargo. It is important to note that input transformation by Emirates Airlines is impossible without transforming resources (Efthymiou & Papatheodorou, 2018). Transforming resources are the resources required to turn the inputs into outputs for the company to earn revenue by selling the results. Transforming resources for Emirates Airlines includes airplanes, staff, pilots, front offices, ground crew, booking app, terminals, and cabin crew. These transforming resources all work in unity to ensure that the company achieves the transformation of the inputs into outputs.
Input- transformation- output model refers to the act of the company acquiring inputs and then transforming them into outputs that its customers will pay for in order for the company to earn revenue (Slack & Brandon-Jones, 2018). Emirates Airlines acquires inputs, mainly fuel, water, and passengers, by purchasing them and attracting the passengers with their best services. It then uses the fuel and water to run its machinery and aircraft to transport its passengers to various destinations worldwide. This is indeed the transformation part of inputs to outputs. As highlighted above under outputs, the end products of this transformation include the safe and timely arrival of passengers to their destinations, undamaged Freight, and customer satisfaction. The input-transformation-output model of Emirates Airline can be summed up as demonstrated below.
Emirates Airline’s transformation process model is designed to support and uphold its strategies, such as winning customer loyalty to eliminate customer turnover, creating value and efficiency, and choosing the right employees. The Emirates Airline slogan is â€œFly Emirates, Fly Better.â€
Implications of the Four Vs
Considering the implications of variety, volume, variation, and visibility, commonly known as the four Vs., of the Emirates Airline, we first have to consider the eminence and ability of the Emirates Airline. This is because an organization should deliver the highest quality services or products to attract the most customers. The prominence attracts customers to an organization and renders ability essential for the company. Ability will be crucial to the company as it helps it retain its customers and define it. Organizations survive and flourish when their operations supervision is in the hands of able supervisors that supervise fundamental activities that transform essential inputs into deliverable products or services (Slack and Brandon-Jones, 2019). Creating products and services is based primarily on generatingworth in each operations administration process.
Volume denotes how much service creation is required to satisfy the overall demand in the market. This, therefore, infers that; volume is the physical amount of units or items formed. A high service volume of a company like Emirates Airlines means it offers many services to its customers (Cook and Billig, 2017). This also proves the characteristic of Emirates Airlines that it has a high grade of reliability in itsdelivery of services. Although volume is an essential tool as it shows customers’ confidence in service, it should not be employed to evaluatemarketingdesigns but as a base to obtain insights into the market and structure the following tactics.
Variety, however, recounts the kinds of services or goods to be produced and traded to the clients. It is entirely about the diversity of the services or products sold, which aids the company raise sales and consequentially increase profit potential and reduce their dependency on only one or two output. It is essential as it prevents the company’s shutting if the demand for that sole good or service declines or wanes. The wide variety gives the company more flexibility to produce services or products that conform to and meet its customers’ requirements. Type and volume correlate such that when class is high, the importance of products and services is low.
Variations refer to how much the level of demand changes over time regarding external influences, although many factors make it challenging to forecast. For instance, when a natural tragedy such as the Covid-19 epidemic hit the world, it caused everyone to go topsy-turvy. Most business processes, like the Emirates Airline, do not always exist as independent units but rather as a multitude of variants that require collective Management. These methods are based on the assumption that variations in motives and points are given as inputs to entire processes accumulated together (Zhang et al., 2022). Variation in business, therefore, takes a lot of knowledge and maturity of administrators to fill the gaps that arise from the question of how process variation is drawn and conceptualized in the first, whether it has received relatively little attention. When processes fail to adhere to a precise flow, it usually gives rise to quality issues, both in service or product production processes or in transactional.
The last V of the four Vs. is visibility, which refers to the firm’s value chain. It infers that clients require to understand the firm’s services or products. Service businesses have a high visibility level when likened to engineering industries. It is becoming increasingly essential for customers to be able to locate the company they are searching for quickly. For instance, some online platforms, such as Amazon, have software on their website known as track-and-trace that makes it possible for their customers to monitor where their packages are at any given time. Many individuals have experienced the terrible occasion of getting lost, which is annoying driving aboutincapableof finding the special place of a client, an office, a retail store, or a customer care office they are looking for (Fernandez, 2022). Therefore, organizations must ensure that their signage is visible and clear to everyone so that people can find it quickly. Otherwise, the bad experience of getting lost can lead to loss of customers due to customer frustration which can negatively impact the company in the long run. High visibility signage has helped customers locate the company quickly and has played a vital role in maintaining customer loyalty.
Vision and mission statements
The vision of Emirates Airlines is to maintain international recognition as one of the leading aviation and security services businesses worldwide and set a benchmark within the airline industry. On the other hand, the mission states that the company is committed to safeguarding all its clients, staff, and assets against unlawful interference through continuous training, education, and reviews. The company also aims to implement internationally established industry standards and practices that ensure a safe and secure environment while maintaining business growth.
The mission and vision of the company are essential when considering the objectives of operations management. Operation management produces services relating to resources, processes, and people. The purposes of operations management can be broadly divided into two categories, namely internal and external. Internal purposes relate to the operation of the business itself (Harvey, 2017). They are concerned with matters like quality, cost, and efficiency. At the same time, external objectives, on the other hand, relate to the impacts of industry on its surroundings and are concerned with matters such as environmental impacts, social responsibility, and customer satisfaction. Both objectives are vital to the business’s success, and the company should ensure that it achieves both.
Minimizing operating expenses is one of the operation management objectives that can be achieved in various ways, including improving process efficiency, negotiating better prices with suppliers, and reducing waste (Cook and Billing, 2017). It is one of the crucial elements of the operation management of Emirates Airlines as it helps reduce the overall costs and consequently improves the company’s profitability. The other operational management objective is attaining optimal capacity utilization. This refers to using the company’s resources to their full extent to produce the required services. The optimal utilization capacity of the company can be achieved through production scheduling using technology, effective management techniques, inventory, and good planning.
Improving the quality of services by Emirates Airlines is another operation management objective vital to ensuring customer satisfaction and loyalty. Quality improvement objectives can be achieved through various ways, such as conducting quality audits, employee training, reviewing quality objectives regularly, and implementing quality control procedures (Slack and Brandon-Jones, 2018). It is essential to ensure that quality improvement objectives are aligned with the business’s overall goals and that they are realistic and achievable.
Increasing customer satisfaction involves implementing customer service services procedures and techniques in the best way possible. Customer satisfaction is an operation management objective that should also be aligned with the overall goals of the business to ensure they are completed (Oâ€™Connell and Bueno, 2018). There are several ways to increase customer satisfaction, such as resolving problems quickly and promptly, keeping promises made to customers, ensuring communication effectively, offering the best services and products, and, most importantly, ensuring the provision of excellent customer services.
The fifth operational objective is social responsibility which is giving back to society. This involves helping the surrounding community in any development project that the company feels is essential to that community and is in a position to help. Emirates Airlines believes it has a responsibility to the various communities it serves. Their global outreach puts the company in an excellent position to reach out across nearly all the continents it serves and stand for the numerous things they believe in. For instance, the emirates group has partnered with the United For Wildlife movement, joining other corporations and state governments to keep wildlife preserved for the benefit of future generations.
Challenges faced by Emirates Airline
The Covid 19 pandemic, with which it tagged along an avalanche of disasters, not only affected human lives negatively as it impacted their means of sustainability but also significantly impacted businesses negatively. With lots of nationwide lockdowns, immense loss of lives, restrictions on traveling people by many states, and the economic situations greatly affected Emirates airline, rendering it to register losses at the closing of its financial year (Chang et al., 2022). At the onset of the pandemic,Emirates Airlines experienced the challenge of delayed flights due to the significant increase of issues in processing times. The processing periods increased with the onset of Covid 19 due to the additional airport security procedures and safety measures such as restricted drop-offs positions at security control, delays in flight onboarding and offboarding, more extended questioning periods at the passport control counters, and the temperatures measurement on departures as well as arrival (Chang et al., 2022). Commercial air travel additionally involved delay times at luggage claims, limited passenger carriage by airport vehicles, and thorough and consistent checking of the health records of the passengers. This high time in issues processing is one of Emirates airline’s most significant challenges.
The Management of Emirates Airlines had to devise an appropriate solution to effectively curb this challenge of delayed flights. The Airline took steps to educate and inform their customers about the rigorous protocols that had to be met before traveling, persuading them to arrive at the airport early (Zhang et al., 2021). This allowed enough time for security checks and health assessments that be done before the departure time. The Airline also informed its customers of the required additional documentation, such as the covid 19 certificationsthat were required at that time. The Airline had to increase the number of employees too, and allow for early bookings of flights to reduce delay periods by reducing the travel documents being checked and increasing the number of people checking them.
In summary, Emirates Airlines is the largest Airline in the Middle East, making profits without registering many consecutive losses. Its headquarters are in Dubai international airport, specifically at terminal 3. Its Management understands the four Vs. and operation management objectives, which has helped the company grow, expand, and achieve global recognition.Generally, the direction of Emirates Airlines is well conversant with the four Vs. and fully understands the need to streamline its business processes to develop a culture of self-discipline and promote high efficiency, cost-effectiveness, and business process validity (Fernandez, 2022).Emirates Airlines has continued to follow and adhere to its mission statement, which has enabled it to triumph in performance and consequently win prizes for excellence in all aspects of the company’s business, including hotel, tourism, and travel.
The diversification of Emirates, Cargo, and flight business technologies, as well as the Management of travel agencies, has remained a significant aspect of the Emirate’s business operations. The company’s strategy primarily ensures that clients exploit its operational schedules by discovering new business ventures (Rapajic, 2018). The efficient services when passengers are on board, modern cabin features, adoption of modernized and technologically improved operational systems, and effective driven transport systems highlight how Emirates Airlines aims to enhance its operation’s reliability.
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